chpt 7 supp sol

chpt 7 supp sol - Chapter 7 Supplemental Solutions Exercise...

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Unformatted text preview: Chapter 7 Supplemental Solutions Exercise 7-14 Cash (difference) ........................................................... 439,200 Finance charge expense (1.8% x $600,000) ................... 10,800 .............................Liability financing arrangement .......................................................................450,000 Exercise 7-15 Cash (90% x $60,000) .................................................... 54,000 Loss on sale of receivables (2% x $60,000) .................. 1,200 Receivable from factor ([10% x $60,000] $1,200 fee) ... 4,800 ...............................Accounts receivable (balance sold) .........................................................................60,000 Exercise 7-16 Cash (90% x $60,000) .................................................... 54,000 Loss on sale of receivables ([2% x $60,000] + $3,000) ... 4,200 Receivable from factor ([10% x $60,000] $1,200 fee) .. 4,800 .......................................................Recourse liability ...........................................................................3,000 ...............................Accounts receivable (balance sold) .........................................................................60,000 Problem 7-3 Requirement 1 To record accounts receivable written off during the year 2006. Allowance for uncollectible accounts........................ 35,000 ...................................................Accounts receivable .........................................................................35,000 To record collection of account receivable previously written off. Accounts receivable................................................... 3,000 ........................Allowance for uncollectible accounts ...........................................................................3,000 Cash............................................................................Cash....
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chpt 7 supp sol - Chapter 7 Supplemental Solutions Exercise...

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